Bain Capital, Cinven carve-out Swiss-based Lonza unit, BC Partners’ Appgate unveils $1bn merger, Wells Fargo bets on telepsychiatry

Wells Fargo Strategic Capital leads $24 million investment in Array Behavioral Care and and Appgate, a cybersecurity company backed by BC Partners and Medina Capital, is going public with merger.

Happy Tuesday!

There’s another firm investing behind the confluence of behavioral health and telemedicine. Wells Fargo Strategic Capital has led a $24 million growth equity investment in Array Behavioral Care, betting on the long-term growth and adoption of telepsychiatry everywhere from the hospital setting to home.

“When I came on board [in October 2019], not only were we tracking it but I became increasingly interested based on what I was seeing in the emergency department,” said WFSC Managing Director Rodney Altman, who still practices as a part-time physician in the emergency departments of Stanford University Medical Center and Kaiser Permanente Medical Center.

“I often see patients who would benefit from psychiatric consultations in the emergency department, particularly where access to psychiatric care is not as readily available,” Altman said.

Read Sarah’s insight on the deal on PE Hub.

Securing the future: Appgate, a cybersecurity company backed by BC Partners and Medina Capital, will enter the public markets by merging with Newton Lane Marketing, a shell company led by the prior owner of Washington Capitals.

The combined company valued at $1 billion will receive up to $100 million in convertible notes from Magnatar Capital, according to a source. Existing investors along with the management will retain all of their equity for at least 12 months post-closing.

Appgate based in Miami is projected to generate $40 million in revenue in FY 2021. It offers cybersecurity services to big ticket clients like Fifth Third Bank, Norwegian Cruise Lines, and Secureworks, in addition to government entities.

By merging with publicly traded shell company Newtown Lane Marketing, Appgate will have access to significant capital quickly to accelerate growth, scale, and go-to-market strategies, according to the press release. Read more on PE Hub.

Big Money: Bain Capital and Cinven and will be paying $4.7 billion, including debt, to buy the specialty ingredient unit of Lonza Group, a Swiss chemical business providing ingredients for disinfectants and personal care products.

The process saw interest from a host of large private equity firms like Lone Star Funds, Partners Group Holding AG and Carlyle Group, according to Bloomberg. Buyout firms including Advent International also took part.

Lonza has 17 manufacturing sites worldwide and specializes in microbial control solutions as well as manufactures chemicals used in electronics, aerospace and other industries.

“The free cash flows resulting from the sale will allow us to accelerate our strategic priorities,” Lonza Chairman Albert Baehny said in the press release.

The deal will be completed in the second-half of 2021.Read the complete brief on PE Hub.

That’s it for today. Have a great week ahead, and as always, hit me up with feedback, gossip and tips or whatever you have to say at karishma.v@peimedia.com or find me on LinkedIn.

Note to Readers: It’s that time of year … for the 21st time, the editors of PE Hub and Buyouts honor exceptional buyouts with our Deal of the Year Awards.

Winners are chosen in seven categories: Deal of the Year, Large-Market Deal of the Year, Middle-Market Deal of the Year, Small-Market Deal of the Year, Turnaround of the Year, International Deal of the Year, and Secondaries Deal of the Year.

Go here for more information and to read about rules and methodology. Also check out past winners. Last year, New Mountain took the crown with its exit of Equian.

If you have additional questions, email Private Equity Editor Chris Witkowsky at cwitkowsky@buyoutsinsider.com.

Update: This report has been updated to clarify the party providing convertible notes to Appgate.